Research On PetroChina Branch System And Running Mechanism

On November 15,1999, as a part of reorganization actions, the China National Petroleum Corporation established the PetroChina Company Limited according to the Peoples Republic of China Company Law. What the new-established company PetroChina adopt of is "one legal person, branch is main body" organization system. Now, How to run the branch company smoothly seems to be increasingly urgent to PetroChina.Direct to present condition of less of theories about the branch, this paper studies the problem from basis. In chapter 2, this paper summary the concept of the branch company, the organizing characteristic and the law characteristic, and analyzes the difference between subsidiary, division, and branch. After that, making limited reasonableness and opportunism for premise, using the method of logic analysis this paper proved principal-agent relationship between the branch and the company. Furthermore, this paper points out this kind of relation will damage the company's benefits in the agency process because of the asymmetric information and asymmetric interest.To protect benefits of the company, low the agency risk, and reduce the agency cost, this paper gives two methods. On the one hand, controlling the branch important project investment decision and project management by " concentration and unification", at the same time budgets control as attachment to low the agency risk. Control system for PetroChina branch is designed in chapter 4. On the other hand, making incentive rewards mechanism on the base of performance evaluation, encouraging branch manager behavior accordantly with company. In chapter 5, the paper designed incentive rewards mechanism of the branch for PetroChina. Finally, the thesis summary full paper's creative point and research results.This thesis takes the methods of theories research and application design, its results may be applicable for not only PetroChina, but also other big size companies or enterprise groups.